Tag: candy crush

Activision Blizzard acquires King Digital

Activision Blizzard, a leading publisher of games and parent company of both Blizzard and Activision, has successfully purchased King Digital, makers of the massively popular Candy Crush franchise of mobile games. The company purchased King Digital for $5.9 billion, which is more than Disney paid for the rights to the famed Star Wars franchise. Mobile games are becoming a prominent focus for many companies involved in the game industry, as these particular games have proven to be quite lucrative.

Mobile games market expected to reach $55 billion by 2019

According to Activision Blizzard, the mobile gaming space is expected to reach $36 billion this year, growing to $55 billion by 2019. This explosive growth is creating a great deal of interest among investors, as mobile games could represent a major return on investment in a relatively short amount of time. Investors have been pressuring Activision Blizzard to enter into the mobile games market for several years, but the company has only done so in a limited capacity, focusing its efforts on its more popular franchises for consoles and PC.

Mobile games are very simplistic and do not appeal to the core audience of Activision Blizzard

One of the reasons that Activision Blizzard has been slow to enter into the mobile games space is because its most popular games are not suited for mobile devices. The attraction of these games are their graphics, immersive experiences, and interactive multiplayer options. Mobile devices have very limited capabilities when it comes to providing an expansive and immersive experiences, but they excel at offering consumers access to easy-to-play and simplistic games, in both style and mechanics. Moreover, Activision Blizzard’s core audience is not incredibly involved in mobile games, as they prefer to play their games on consoles and computers.

King Digital could help Activision Blizzard break into the mobile gaming space

The purchase of King Digital may allow Activision Blizzard to begin establishing a strong presence in the mobile gaming space. In the past, King Digital saw major success with its mobile games, but has struggled to replicate this success after 2014. The company has developed some 200 mobile games, but only its Candy Crush franchise has done well, both financially and in terms of player adoption.

Reports have stated that the purchase of the app developer has now been made for $5.9 billion.

The tremendously popular mobile games developer behind Candy Crush Saga, King Digital, has now been acquired for a reported $5.9 billion by another developer, Activision Blizzard.

Activision Blizzard is the developer of popular video games such as Destiny and Call of Duty.

By way of this purchase, Activision Blizzard will be obtaining all the outstanding shares of King Digital for $18.00 per share, in cash. This is a premium of 20 percent over the closing price of King on October 30, the day the deal actually went through. Once this deal officially closes, it will mean that two of the top 5 top grossing mobile games in the United States (Candy Crush Saga and Candy Crush Soda Saga) will be brought together with the leading console video game franchise (Call of Duty), as well as the largest franchise in PC games (World of Warcraft).

This mobile games developer acquisition has the potential to be a highly powerful one, heading forward.

On the first trading day after the acquisition, the shares of King Digital spiked by 15 percent in pre-trading, while the shares of Activision slumped slightly by 2.6 percent. In terms of the revenues of the companies, during the 12 months that ended with the close of September, King had brought in $2.1 billion while Activision Blizzard took in $4.7 billion.

According to the CEO of Activision Blizzard, Robert Kotick, when discussing King, “They built an incredible business.” He explained that “When we think about people who create compelling content and satisfy large audiences, they’ve been brilliant at it. We thought it would make a great opportunity for us to enter a new market.”

The team of CEO of King, Riccardo Zacconi, COO Stephane Kurgan and CCO Sebastian Knuttsson will be continuing their operations of King as an independent unit of operations. Zacconi said that they will be pooling their expertise in free to play mobile games with the world-class brands at Activision Blizzard, a company that already has a solid history of building and sustaining some of the top video gaming franchises.